Debt Review South Africa 2026 — How It Works, What It Costs & Whether It's Right for You
Last updated: June 2026 · Affiliate disclosure
Debt review is a formal legal process that restructures your debt repayments to an affordable level and protects you from creditor action. If you're over-indebted, it's one of the most powerful tools available under South African law — but it comes with significant restrictions.
Debt Review vs Debt Consolidation — Key Differences
| Debt Review | Debt Consolidation Loan | |
|---|---|---|
| What it is | Formal NCA legal process | New loan to pay off existing debts |
| Legal protection | ✅ Yes — creditors cannot sue you | ❌ No legal protection |
| Credit access | ❌ Blocked while under review | ✅ Can still access credit |
| Credit record impact | Flag removed on completion | No flag — but debt remains |
| Who it's for | Genuinely over-indebted | Managing debt, not over-indebted |
| Duration | 3–5 years typically | Loan term (12–72 months) |
| Regulated fees | ✅ NCA capped | Interest + fees per NCA |
How the Debt Review Process Works — Step by Step
- Apply to a registered debt counsellor — they assess whether you are over-indebted under the NCA definition.
- Creditors are notified — within 5 business days of your application. They cannot take legal action against you once notified.
- Debt counsellor negotiates — they restructure your repayments across all creditors to a single affordable monthly amount.
- Magistrate's court order — the restructured plan is made a court order, making it legally binding on all creditors.
- Single monthly payment — you pay one amount to a Payment Distribution Agency (PDA) which distributes to each creditor.
- Completion and clearance — once all debts are settled, you receive a clearance certificate and the flag is removed from your credit record.
What Debt Review Costs in South Africa
| Fee Type | Amount (NCA Regulated) | When Charged |
|---|---|---|
| Application fee | R50 | Once-off, upfront |
| Restructuring fee | First month's new repayment (max R6,000 individual / R8,000 couple) | First month |
| Monthly aftercare fee | 5% of monthly distribution (max R400/month) | Monthly |
| Legal fee (court order) | R750 (attorney fee, regulated) | Once-off |
| PDA fee | Typically 3% of monthly distribution | Monthly |
All fees are paid from your restructured monthly payment — not as additional upfront costs. A legitimate debt counsellor will never ask for large upfront cash payments.
Am I Over-Indebted? Signs You Qualify for Debt Review
- Debt Review vs Consolidation vs Negotiation — which is right for you?
- Your total monthly debt repayments exceed 40–50% of your take-home pay
- You're missing payments or paying some creditors late to pay others
- You're borrowing new credit to pay existing debt
- You've received letters of demand or summons from creditors
- You have a garnishee order (emoluments attachment order) against your salary
- You genuinely cannot see a way to pay off your debt at current repayment levels
Debt Review Pros and Cons
✓ Advantages
- Legal protection from creditor action
- One affordable monthly payment
- Interest rates often reduced by negotiation
- Salary protected from further garnishee orders
- Clear path to being debt-free
- Flag fully removed on completion
✗ Disadvantages
- No new credit while under review
- Takes 3–5 years to complete
- Assets can still be repossessed if payments missed
- Home loan and vehicle finance are treated separately
- You cannot exit debt review once started without settling in full
Not over-indebted? Compare loan options instead
If you need to consolidate manageable debt or access cash, compare SA's top lenders first.
uApply — Up to R250,000 → uApply Debt Negotiation → Debt consolidation guideFrequently Asked Questions
What is debt review in South Africa?
A formal NCA process where a registered debt counsellor restructures your repayments to an affordable level and provides legal protection from creditor action. One monthly payment, multiple creditors serviced.
Can I get a loan while under debt review?
No. A flag on your credit record blocks new credit while you're under review. This is by design — to prevent you from accumulating more debt. New credit is only available once you receive your clearance certificate.
How long does debt review take?
Typically 3 to 5 years. The duration depends on your total debt, income, and the restructured repayment terms negotiated with creditors.
Is debt review the same as sequestration?
No. Sequestration is formal insolvency — your estate is surrendered to a trustee and assets are liquidated. It stays on your credit record for 10 years. Debt review is far less severe and is removed on completion.
What happens to my car and home during debt review?
Your home loan and vehicle finance are treated separately in debt review. They can be included in the restructured plan but if you miss payments on secured assets, the creditor can still repossess. Keeping these payments up to date is critical.
Can I exit debt review early?
Only if you pay all your debts in full. You cannot simply withdraw once the process has started without settling everything. This is why entering debt review is a serious decision that should not be taken lightly.
Disclaimer: PrimeCompare is a comparison service and does not provide financial or legal advice. All lenders listed are NCR-registered and NCA-compliant. Borrow responsibly.